Nightmare Buying - Broker Threats

[Tspringer]

I find myself in a downright surreal scenario that feels like a bad twilight zone episode. The listing broker - who contractually is also my broker according to the purchase and sale agreement - has deliberately and repeatedly misrepresented the vessel (in writing), lied to me, cursed and screamed at me, called my insurance people and screamed/cursed at them, and is now threatening to withhold $6,000 of my deposit on the boat. This quick description does not scratch the surface of all that has taken place. I have comprehensive documentary evidence of ALL of it.

Now I cannot close on the purchase of the boat because the survey notes over 15 different essential repairs that would be required for the boat to be seaworthy. The survey has been rejected by 5 different insurance companies. They will not write the insurance until the repairs are done.

When 3 of these insurance companies had rejected the survey, I engaged the broker. He screamed at me cursing that I had messed up the entire insurance process and potentially killed the deal by disclosing too much information to the insurance underwriters and because of my screwing up the deal, he was going to hold back $6,000 of my deposit money if I did not pay out of my pocket for the repairs the insurance required prior to closing. He wants me to pay to repair someone else's boat. Repairs some of which he had assured me in writing had already been completed - straight up lies. He says the $6K is to cover his travel expenses, commissioning the boat for the survey, re-winterizing the boat, for removing and then installing new shrink wrap on the boat (note that at survey the shrink wrap was NOT removed) pay for his time spent on the survey and working on the deal. He is absolutely insistent (screaming - literally) that HIS insurance contacts would have gotten the policy bound without any issues at all and so all of the problems were caused by me and this justifies his keeping $6K of the deposit on the boat.

So I cannot buy the boat because it is impossible to get insurance due to boat condition issues and the broker says he is keeping $6K of my deposit.

Do I need a lawyer? This is a complete disaster. I did not enter into this seeking a legal nightmare - I want to buy a boat.

[GordMay]

Yes, you need a lawyer.
If he incurred costs, on your behalf, and at your direction; he should probably be reasonably reimbursed, whether the sale goes through, or not.

[Empty Pockets]

I would hope your sales contract and associated deposit were made “contingent upon survey results”? If so, the broker has no legs to stand on. You’re not satisfied with the survey, deal over, deposit returned. Simple. If the broker doesn’t understand that, you probably do need a lawyer. Is the broker independent, or work for a company? If just an agent for a company, my first call would be to their office.

[Cheechako]

You probably need a lawyer, but if the state you are in has licensing requirements etc for Brokers, talk to that agency with your "proof". He will likely change his attitude fast if he's losing his license...
Also, Our state has an on line consumer complaint thing. I have used it twice and they acted super fast .....like in a couple days. When businesses get contacted by the Attorney General they start groveling fast...

[billknny]

Originally Posted by Tspringer

I find myself in a downright surreal scenario that feels like a bad twilight zone episode. The listing broker - who contractually is also my broker according to the purchase and sale agreement...

This very first statement indicates a serious potential problem.

A broker is a legal "agent" of ONE party. Usually the broker works for the seller, and has fiduciary responsibility to the SELLER ONLY. You can contract a "buyer's broker" who will have fiduciary responsibility to the you as the buyer. BUT... one broker CAN NOT have fiduciary responsibility to both buyer and seller. That is a classic conflict of interest, and is illegal--everywhere.

There are two possibilities here. One is you misunderstand the relationship, and only THINK he is YOUR broker. The other is that this idiot has misrepresented himself to you as YOUR broker. Since you have already told us that he has basically told you to commit insurance fraud, we can bet this guy is a total scumbag and is capable of anything.

We can only hope that he actually has your deposit in a real escrow account and hasn't spent it all on the ponies... which I am betting is actually the case. It is one possible explanation of why he is so desperate to close the deal.

Once a broker even hints that you should commit insurance fraud, or tax fraud, or ANY other kind of underhanded dealings, it is time to run away.

What he does with you, he will do TO you.

Hopefully, you have signed a standard brokerage contract that specifies exactly the conditions under which you can back out of the deal. Typically this relates to unsatisfactory survey, or unsatisfactory sea trial. A lawyer knowledgable in admiralty law and boat sales issues can certainly help, but it won't be cheap.

[wizoc]

What state are you in? That will determine what rights, if any, you have against the broker.

[davidmilne]

what a jerk.
you will probably need a lawyer. or...
buy a baseball bat.
go to the police. try to get him charged with fraud.
bite the bullet unless the legal fees are less than 6,000. lawyers are worse than yacht brokers.

[Valmika]

Originally Posted by wizoc

What state are you in? That will determine what rights, if any, you have against the broker.

Same question. I have heard that only California and Florida have licensing and bonding for boat brokers. Since he was wrapping your boat I'm thinking you are not in either one of those.

[Rorzech]

Run away, and kiss your money goodbye. It's already been spent on booze and women and wasted the rest anyway. Don't throw good money after bad. Buyer beware !

[compassrose88]

Depends on the state but I believe if the listing states items are in working order and they are not, the owner is required to fix or compensate you for the value of the repair or a replacement.

[Scaramanga F25]

This individual should be NAMED! as well as the outfit he works for.

[dhuff1289]

If you are in Fla. the state has a dept. that licenses and regulates all brokers; it is the Dept. of Business and Professional Regulation. I am a broker and if your story is portrayed accurately, you don't owe the broker a dime, Try the state you are in first in case they regulate brokers as Fla. does before paying for a lawyer, but in no way let the broker get away with his unethical behavior. Suonds to me like he isn't very successful and might be missing some meals.

[Chuck34]

I like the idea of reporting him to whatever state regulatory agency he has to answer to. I'm in VA and I'm guessing the State Corp Commission would be the go to agency to report him to.
And yes, you probably need a lawyer as well.

[guyrj33]

I suggest you look for a lawyer who is willing to have a $500 conversation, which concludes with the lawyer writing a letter to this broker demanding the return of your deposit.

[Capn Jimbo]

Any advice here short of to engage an attorney is unsound. I assume you signed a contract and the contract alone speaks for itself. Please ignore any speculations and do nothing until you have had your contract reviewed.

Of course there are many possibilities - paying, not paying, filing a lawsuit, having your attorney settle the matter, contact the state, contact the local prosecutor. None of these should be attempted or considered prior to getting legal advice.

If you act on some of the bar stool expert's advice that tends to flow so freely around here, you may incur other liabilities. Do only one thing: contact an attorney now!